
Discover why CEOs who master sales compensation outperform competitors. Mark Donnolo's 2013 game-changer reveals the hidden alignment between pay structures and company strategy - a revelation that's transformed how business leaders motivate their revenue engines. What's your compensation plan secretly telling your salesforce?
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When it comes to sales compensation, many companies make the mistake of jumping straight to the numbers. They pull out their calculators and start crunching figures without considering the bigger picture. But here's the truth: your sales compensation plan should be a strategic tool that drives your business forward. Think of it as a Revenue Roadmap. This roadmap has four key layers: Insight, Sales Strategy, Customer Coverage, and Enablement. Each layer builds upon the other, creating a cohesive plan that aligns your sales efforts with your company's goals. Let's take a closer look at each layer: 1. Insight: This is where you gather intelligence about your market, customers, and competition. It's the foundation for everything that follows. 2. Sales Strategy: Based on your insights, you develop a strategy for growth. Are you focusing on new markets? Expanding existing accounts? Your compensation plan should support these strategic choices. 3. Customer Coverage: This layer determines how you'll reach your customers. It includes your sales channels, team structure, and territory design. 4. Enablement: Finally, we have the tools and processes that support your sales team, including training, technology, and yes, compensation. By considering all these layers, you ensure that your compensation plan isn't just a standalone element, but an integral part of your overall sales strategy.